In a significant development for the cryptocurrency and financial sectors, GAM Global Special Situations Fund, a Swiss independent investment manager, has called upon SBI Holdings, a key Japanese financial group, to adopt a transparent and active approach toward its blockchain and XRP-related investments.
Crypto Eri (@sentosumosaba), a prominent crypto figure, shared GAM’s open letter on X. The letter, dated December 3, 2024, suggests an XRP buyback program as part of a broader strategy to align SBI’s market value with its net asset value (NAV).
Recommendations for SBI
The letter emphasizes that SBI Holdings is undervalued, highlighting that its XRP holdings alone are valued at JPY 1.6 trillion, surpassing the company’s entire market capitalization of JPY 1.2 trillion.
GAM suggests a strategy similar to MicroStrategy’s Bitcoin-focused approach in the U.S. that could significantly boost SBI’s market perception and shareholder value.
The fund managers also argue that clearer communication about XRP holdings and strategic actions like a buyback program, could close the gap between SBI’s market value and net asset value, estimated at JPY 3.9 trillion.
GAM also calls for increased transparency, including regular updates on the value of SBI’s XRP holdings and a detailed outline of its blockchain strategy.
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SBI Japan’s Relationship with XRP
SBI Japan has long been a staunch advocate of Ripple and XRP as an investor and partner in various blockchain initiatives. SBI Remit, a subsidiary of the crypto-focused SBI branch in Japan SBI VC Trade, has adopted XRP as a bridge currency for its remittance services in The Philippines, Vietnam, and Indonesia. The company has also shown support for XRP multiple times.
Given this background, the proposal from GAM Investments aligns closely with SBI’s historical support for Ripple’s ecosystem. However, it also represents a bold step forward, as an extensive XRP buyback program would signal an even deeper commitment to the asset’s role in SBI’s overall corporate strategy.
Potential Implications for XRP
If SBI Japan proceeds with an XRP buyback program, the impact on the token’s market dynamics could be significant. Such a move would likely increase demand for XRP, potentially driving up its market price. Furthermore, SBI’s public endorsement of XRP through a high-profile investment would reinforce the asset’s credibility in the eyes of institutional investors.
Additionally, this strategy could lead to broader adoption of XRP in financial markets, as it would highlight its value proposition as a powerful digital asset for cross-border transactions. This would align with Ripple’s ongoing efforts to position XRP as a key player in global remittance and liquidity solutions.
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